Navy Awards $420M Contract to Electric Boat Corp. for Submarine Services

Contract Overview

Contract Amount: $420,230,975 ($420.2M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2000-09-28

End Date: 2015-09-30

Contract Duration: 5,480 days

Daily Burn Rate: $76.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340, UNITED STATES OF AMERICA

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $420.2 million to ELECTRIC BOAT CORPORATION for work described as: Key points: 1. Significant contract value of $420.2 million awarded. 2. Electric Boat Corporation is a major player in submarine manufacturing. 3. Contract awarded via 'not competed' method, raising potential competition concerns. 4. Spending falls within the defense sector, specifically naval operations.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without comparable contracts, assessing the pricing against similar services is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services.

Public Impact

Impacts national security through submarine maintenance and services. Supports jobs in the defense manufacturing sector. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost-plus contract type carries inherent cost risk.
Long contract duration (5480 days).

Positive Signals

Award to established submarine manufacturer.
Supports critical defense capabilities.

Sector Analysis

This contract falls within the defense sector, specifically supporting naval operations and submarine maintenance. Spending benchmarks for such specialized services are highly variable and depend on the scope of work.

Small Business Impact

The data does not indicate any specific provisions or benefits for small businesses in this contract award.

Oversight & Accountability

The 'not competed' nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for cost management under the CPFF structure is crucial.

Related Government Programs

Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Cost-plus contract risk
Long contract duration
Potential for cost overruns
Limited transparency on specific services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $420.2 million to ELECTRIC BOAT CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ELECTRIC BOAT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $420.2 million.

What is the period of performance?

Start: 2000-09-28. End: 2015-09-30.

What specific services are covered under this $420 million contract, and how do they align with the Navy's strategic needs?

The contract is for submarine services, likely encompassing maintenance, repair, modernization, and potentially lifecycle support for naval submarines. These services are critical for maintaining the operational readiness and technological superiority of the U.S. submarine fleet, which is a cornerstone of national security strategy.

Given the sole-source nature, what mechanisms are in place to ensure cost control and prevent contractor inefficiencies?

While sole-source awards limit upfront price competition, the Cost Plus Fixed Fee structure requires robust government oversight. The Navy must diligently monitor costs, scrutinize expenditures, and ensure the fixed fee remains appropriate for the defined scope. Performance metrics and regular reviews are essential to hold Electric Boat accountable for efficient service delivery.

How does the long contract duration of over 15 years impact the potential for innovation and adaptation to future technological advancements?

A 15-year contract duration presents a challenge for incorporating rapid technological advancements. While it provides stability for long-term maintenance and upgrades, it may limit flexibility to adopt newer, potentially more efficient technologies that emerge during the contract period. Periodic reviews and potential contract modifications could mitigate this risk.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 75 EASTERN POINT RD, GROTON, CT, 06340

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline